760 IAC 1-61-4 - Licensure of viatical settlement providers
Authority: IC 27-8-19.8-10
Affected: IC 4-21.5-3; IC 27-8-19.8-5
Sec. 4.
(a) No person
shall act as a viatical settlement provider unless the person has first
obtained a license from the commissioner.
(b) An application for licensing as a
viatical settlement provider must be submitted on an application form that may
be obtained from the department of insurance at 311 West Washington Street,
Suite 300, Indianapolis, Indiana 46204. The application form is adopted by
reference.
(c) A licensing fee in
the amount of one thousand dollars ($1,000) shall accompany the completed
application form.
(d) The
application for license as a viatical settlement provider shall furnish all of
the applicable information as follows:
(1) The
name, address, and organizational structure of the applicant.
(2) Certified copies of the applicant's
organization documents, including, but not limited to:
(A) articles of incorporation and any
amendments thereto; and
(B) a
certificate of incorporation and any amendments thereto.
(3) The identity of all of the following:
(A) Stockholders holding ten percent (10%) or
more of the voting securities.
(B)
Investors holding a ten percent (10%) or greater interest.
(C) Partners.
(D) Corporate officers.
(E) Trustees.
(F) If an association, all of the
members.
(G) Any affiliates,
together with a chart showing the relationship of the applicant to all
affiliates. Any affiliate that is an insurance company licensed in Indiana
shall be identified as such.
(4) Biographical affidavits of all of the
following:
(A) Officers.
(B) Directors.
(C) Stockholders holding ten percent (10%) or
more voting securities.
(D)
Investors holding ten percent (10%) or greater interest.
(E) Partners.
(F) Trustees.
(G) Members, if an association.
(5) A list of states in which the
viatical settlement provider is licensed on the date of application, a copy of
each license, and a list of the states in which the viatical settlement
provider is or has ever engaged in business as a viatical settlement
provider.
(6) A list of all
licenses from any level of federal government or government of any state
applied for by or currently or previously held by the applicant, its officers,
directors, trustees, stockholders holding ten percent (10%) or more of voting
securities, investors holding a ten percent (10%) or greater interest,
partners, or members (if an association), and a statement showing the current
status of any such license, including whether it has ever been denied, revoked,
or suspended.
(7) A report stating
whether any formal or informal regulatory action by any level of government of
any state or the federal government, including the Securities and Exchange
Commission, has been taken or is pending against the applicant or its officers,
directors, trustees, stockholders holding ten percent (10%) or more of voting
securities, investors holding a ten percent (10%) or greater interest,
partners, or members (if an association), and the status of the
action.
(8) A report stating
whether any criminal or civil action involving or alleging an offense that
includes fraudulent acts or breach of contract has been taken or is pending
against the applicant or its officers, directors, trustees, stockholders
holding ten percent (10%) or more of voting securities, investors holding a ten
percent (10%) or greater interest, partners, or members (if an association),
and the status of the action.
(9) A
copy of the applicant's most recent financial statement. A financial statement,
for purposes of this rule, consists of a financial statement that is compiled
in a manner consistent with generally accepted accounting principles (GAAP) and
is accompanied by either an opinion by an independent accounting firm or a
statement by an officer of the applicant, representing that the financial
statement was prepared in a manner consistent with GAAP and accurately reflects
the financial condition of the applicant.
(10) Copies of any documents filed by the
applicant with the Securities and Exchange Commission and any state securities
regulator.
(11) A detailed plan of
operations for the applicant's business, including, but not limited to,
information regarding or identifying the following items:
(A) Escrow accounts and banks.
(B) Advertising and agents, brokers, or other
distribution system to be used.
(C)
Marketing techniques to be used.
(D) Market training program.
(E) Entities with whom the applicant will
contract for services in connection with the acquisition, pricing, and
servicing of viatical settlement contracts.
(12) Such other information as the
commissioner reasonably may require.
(e) A viatical settlement provider must
possess net worth in the amount of not less than one hundred fifty thousand
dollars ($150,000) to qualify for and maintain its license. For purposes of
this subsection, in computing capital, the value of viaticated policies shall
not be included.
(f) A viatical
settlement provider may obtain financing for the execution, acquisition, or
retention of a viatical settlement contract only:
(1) through the services of an individual
licensed to sell investments in viatical settlement contracts under applicable
state laws; or
(2) from an
institutional lender, insurance company, or reinsurer whose sole activity
related to the transaction is providing funds to effect the viatical settlement
and who has an agreement in writing with the viatical settlement provider to
finance viatical settlement contracts.
(g) A viatical settlement provider shall
report any material change in the information in the application or renewal
form referred to in this section and section 5 of this rule, including any
change of a residential or business address, not later than the thirtieth day
after the date on which the change takes effect.
(h) The application process shall be as
follows:
(1) The department of insurance shall
have thirty (30) days after receipt of an application to determine whether the
application is complete. If an application is not complete, the department of
insurance will give the applicant written notice of the required information
necessary to complete the application. The department shall take no further
action on the application until the required information is
submitted.
(2) The department of
insurance shall have thirty (30) days from the date the application is
determined to be complete under subdivision (1) to process the application and
approve or deny it.
(i)
If the commissioner denies an application for a license, the commissioner shall
notify the applicant and advise the applicant in writing of the reasons for the
denial of the license. Not later than sixty (60) days after receiving a notice
from the commissioner under this subsection, the applicant may make written
demand upon the commissioner for a hearing to determine the reasonableness of
the commissioner's action. Such hearing shall be held within thirty (30) days
from the date of receipt of the written demand of the applicant and shall be
conducted in accordance with IC
4-21.5-3.
Notes
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